Thursday Midday Livestock Market Summary - Cattle Futures Retract Early Week Gains

GENERAL COMMENTS:

Strong triple-digit losses in live cattle and feeder cattle trade Thursday morning have focused on a combination of issues, all pointing to a jittery market at previous price levels. News of workers at the JBS plant in Greeley, Colorado, planning to strike seemed to be the major point of focus through the morning. This will affect about 5,000 head of cattle processed daily by the plant. Given the current structure, it is not unlikely any committed cattle can be absorbed into the system. But the focus on plants readjusting positions seems to be focusing on long-term plant viability given the extensive negative margins in the processing industry at this point. This market shift is not only affecting live cattle trade but is pushing feeder cattle futures sharply lower. Light pressure is seen in lean hog market, based primarily on weakness in outside markets Thursday. March corn is up 4 1/2 at $4.34 and March soybean meal is up $7.70 at $303.9. The Dow Jones Industrial Average is down 406.44 at 49,094.86.

LIVE CATTLE:

Live cattle futures are quickly backing away from part of early week gains Thursday morning. Losses of $4 to $5 per cwt are seen at midday, creating some concern that additional sharp losses may continue to develop over the coming days. The news focus seems to be pointed to the processing reduction seen in the JBS Greeley plant based on reported impending strikes at the plant. The likelihood that this will have a major impact on overall industry processing capacity beyond a few days is limited given the current structure of the market and current overall company and industry availability. This industry is not beyond rerouting trucks to other plants or companies in order to sustain needs and capacity levels. But watching daily slaughter rates through the month of February will help give an indicator of overall capacity levels. Firm pressure in outside markets and weaker beef values cannot be downplayed in the hesitancy for futures buyers to step into a market which very well could have run out of oxygen at current price levels. Cash cattle markets are still sluggish with a few bids on the table in parts of Iowa, and a major packer has offered to "call in" for $378 in eastern Nebraska. Packer inquiry should continue to improve as the day progresses, but significant trade volume will likely be delayed until later today and/or Friday. February live cattle are $3.08 lower at $237.45, April live cattle are $3.88 lower at $237.925, June live cattle are $3.13 lower at $234.10. 

Boxed beef prices are lower: choice down $0.82 ($367.20) and select down $1.08 ($361.01) with a movement of 48.79 loads (38.54 loads of choice, 4.14 loads of select, zero loads of trim and 6.11 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures are leading the market lower Thursday. This market move seems like a general reversal to early week buyer support that flooded the market during trade Monday and Tuesday. The news cycle focus in the market seems to be centered on the developing strike at the JBS plant in Greeley, but this move is likely much more focused on the ability to sustain additional buyer support at current price levels. Nearby futures have rallied nearly $70 per cwt since the November low, creating a generally unchecked upward market surge within the entire cattle market. This lack of small to moderate corrections can make any market vulnerable, including the cattle market which is focusing on tight supplies. In comparison to the wild shifts seen last fall, these $4 to $5 per cwt swings seem generally tame. But it does create significant uncertainty given how lightly traded the feeder cattle market remains with generally light volume. March feeders are $4.50 lower at $365.575, April feeders are $4.80 lower at $362.7 and May feeders are $5.53 lower at $358.225.

LEAN HOGS:

Lean hog futures have been the quiet market through the entire livestock complex Thursday morning. Spot February futures are leading the market lower with light pressure, while very narrow losses are seen through the rest of the contracts. The continued upward move higher in nearby futures since hitting seasonal lows in November have continued to move prices well above the 40-day moving average. Recent volatility in cattle trade seems to have lost its short-term impact on hog traders at this moment as traders continue to look for continued strong demand support as 2026 develops. At current price levels and comparative price relationships to beef, the pork industry seems well insulated to potential economic pressure that may develop over the coming weeks and months. February lean hogs are $0.73 lower at $87.275, April lean hogs are $0.35 lower at $98.1 and May lean hogs are $0.15 lower at $101.60. Hog prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork cutouts totaled 136.75 loads with 120.22 loads of pork cuts and 16.53 loads of trim. Pork cutout values are up $1.69 at $95.00.

Thursday Morning Livestock Market Update - Futures May See Weakness

GENERAL COMMENTS:

March feeder cattle futures reached up and nearly closed the chart gap. That will likely be accomplished in the near term, but futures may see a retracement Thursday as traders wait for the cash cattle trade. Optimism remains over higher cash this week, but the extent of the increase is uncertain. Futures have already factored in higher prices. Boxed beef prices took a hit Wednesday, with choice down $2.09 and select down $5.14. Packers are desperately hoping feedlots will need to move cattle. However, feedlots have no interest in selling cattle at lower prices, leaving packers with no choice but to pay more. There was an article in the Western Farm Press Daily stating that the New World screwworm was detected in Florida. It was discovered in a horse imported from Argentina that underwent routine inspection at an import quarantine facility. This was reported earlier this week, but was not a threat due to the discovery. It does underscore the importance of vigilance. The USDA AFIS website reports there is no NWS currently in the U.S.

Hog futures took a little breather Wednesday, but not until they first made new contract highs again. Both the June and July contracts initially pushed above $112 before pulling back. Only the April contract closed higher. Follow-through weakness may continue Thursday due to the substantial decline of pork cutouts. Cutout values fell $4.37 due to a huge decline in bellies of $19.49. Ribs declined $5.74, and butts were down $3.54. Cash was higher, with the National Daily Direct Afternoon Hog report up $0.45. Packers will likely pull back in their buying aggressiveness as they may have purchased most of the hogs required for the week. Weekly hog weight declined to 291.6 pounds last week, supporting the anticipated decline in weights.

	BULL SIDE		BEAR SIDE
1)	Higher cash cattle trade is expected and should continue to support the market.	1)	The market already has higher cash trade factored in. It may pull back ahead of cash trade, or even if cash is higher after the trade takes place.
2)	Feeder cattle are being purchased at a premium to cash by feedlots as they have difficulty finding sufficient animals to keep feedlots full.	2)	The decline in boxed beef prices on Wednesday may be a cause for concern, as it may indicate prices have reached a threshold.
3)	Weekly hog weights were 291.6 pounds, down 1.5 pounds from the previous week. This trend is expected to continue in the near term.	3)	Weekly hog weights at 291.6 pounds remain 0.9 pounds higher than a year ago.
4)	New contract highs were made in hogs before futures pulled back. The trend remains higher as traders are bullish on the market.	4)	The huge decline in pork cutouts on Wednesday eliminated a lot of what has been gained recently. This is cause for concern.

Wednesday Closing Livestock Market Update - Cattle Close Higher While Hogs Pull Back

GENERAL COMMENTS:

The livestock contracts ended the day mixed, with the lean hog contracts closing lower while the cattle contracts kept their higher position. Still no cash cattle trade has developed, and asking prices still aren't established for the week. March corn is up 1 cent per bushel and March soybean meal is up $4.30. The Dow Jones Industrial Average is up 260.31 points and the NASDAQ is down 350.61 points.

LIVE CATTLE:

The live cattle complex again closed higher as traders continue to believe in the market's long-term fundamental strength. February live cattle closed $0.20 higher at $240.52, April live cattle closed $0.17 higher at $241.80 and June live cattle closed $0.60 higher at $237.22. Still no cash cattle trade has developed as feedlot managers are more than happy to wait the week out, as they know fed cash cattle supplies are thin and packers need more cattle. Bids and asking prices remain elusive at this point, and trade will likely be delayed until Friday. 

Wednesday's slaughter is estimated at 113,000 head, 1,000 head more than a week ago and 7,000 head less than a year ago.

Boxed beef prices closed lower: choice down $2.69 ($368.02) and select down $5.14 ($362.09) with 101 loads (61.93 loads of choice, 9.08 loads of select, 14.74 loads of trim and 14.98 loads of trim).

THURSDAY'S CATTLE CALL: Higher. With market-ready supplies thin, prices will likely be higher again this week.

FEEDER CATTLE:

With the support of the live cattle contracts trading higher, and the assumption that fed cash cattle prices could trade higher later this week, too, the market felt more than confident to trade the contracts higher. March feeders closed $2.15 higher at $370.07, April feeders closed $1.62 higher at $367.50 and May feeders closed $1.35 higher at $363.75. At this point, the market has fully recovered the technical position lost during the late October crash. At the Bassett Livestock Auction in Bassett, Nebraska, compared to last week, steers weighing 550 pounds traded $4.00 higher and steers weighing 700 to 750 pounds traded mostly $11.00 higher. Heifers weighing 500 to 650 pounds traded unevenly steady. Feeder cattle supply over 600 pounds was 64%. The CME feeder cattle index 2/3/2026: up $0.44, $374.57.

LEAN HOGS:

Although the lean hog complex desired to push higher and close higher, the market grew leery of doing so as pork cutout values declined today. April lean hogs closed $0.30 higher at $98.45, June lean hogs closed $0.30 lower at $110.57 and July lean hogs closed $0.47 lower at $111.35. Until pork cutout values improve, traders may hold the market back as opposed to letting it creep higher. Hog prices closed $0.45 higher on the Daily Direct Afternoon Hog Report, with a weighted average price of $86.82 on 3,522 head. Pork cutouts totaled 302.25 loads with 269.29 loads of pork cuts and 32.97 loads of trim. Pork cutout values: down $4.37, $93.00. Wednesday's slaughter is estimated at 495,000 head, 11,000 head more than a week and a year ago. The CME lean hog index 2/2/2026: up $0.12, $85.83.

THURSDAY'S HOG CALL: Lower. At this point, it's likely that packers have mostly filled their cash needs for the week and won't be very aggressive in the cash market the rest of the week.

Wednesday Midday Livestock Market Update - With Fundamental Support, Livestock Contracts Scale Higher

GENERAL COMMENTS:

It's been another prosperous morning for the livestock complex as all three of the markets are trading fully higher into Wednesday's noon hour. Still no cash cattle trade has developed, but it's assumed prices will be higher again this week as the board's been incredibly supportive and market's fundamentals point to higher prices as market-ready supplies of cattle are thin. March corn is up 1 1/4 cents per bushel and March soybean meal is up $6.80. The Dow Jones Industrial Average is up 311.56 points and NASDAQ is down 269.60 points.

LIVE CATTLE:

The live cattle complex continues to rally aggressively into Wednesday's noon hour as the market is robustly supported by strong fundamentals. Aside from last week's bullish Cattle Inventory report, and the rally seen in last week's fed cash cattle market, the market knows market-ready supplies of cattle are thin right now and fed cash cattle prices are likely to continue to scale higher through at the least the first quarter of the year. The rekindled flame of the market's strong fundamentals has helped drive a notable rally in the futures complex too. February live cattle are up $0.47 at $240.82, April live cattle are up $1.12 at $242.70 and June live cattle are up $1.35 at $237.97. Still no cash cattle trade has developed and it's most likely business will be delayed until Thursday or Friday. Both bids and asking prices remain elusive at this point.

Boxed beef prices are lower: choice down $0.57 ($370.14) and select down $0.52 ($366.71) with a movement of 58 loads (36.60 loads of choice, 3.81 loads of select, 10.18 loads of trim and 7.11 loads of ground beef).

FEEDER CATTLE:

The feeder cattle complex is again charging higher into the day's noon hour as the market is feeling well supported by the industry's strong fundamentals and is also comforted to see the live cattle contracts trading higher as well. March feeders are up $2.57 at $370.50, April feeders are up $2.20 at $368.07 and May feeders are up $1.77 at $364.00. So long as the live cattle contracts continue to scale higher through the afternoon, it's likely feeder cattle contracts will do so as well.

LEAN HOGS:

It's a full-fledged break-out day for the lean hog complex as the spot April contract scales to new contract highs as demand has been plentiful and the market isn't fearful of grinding higher. April lean hogs are up $1.45 at $99.60, June lean hogs are up $0.95 at $111.82 and July lean hogs are up $0.67 at $112.50. Even though midday pork cutout values are a tick lower, the market seems to be finding comfort in demand which has been strong in recent trading days.

The projected CME Lean Hog Index is delayed from the source. Hog prices are higher on the Daily Direct Morning Hog Report, up $0.02 with a weighted average price of $86.29, ranging from $82.00 to $88.00 on 2,480 head and a five-day rolling average of $85.49. Pork cutouts total 179.51 loads with 159.35 loads of pork cuts and 20.16 loads of trim. Pork cutout values: down $3.84, $93.53.

Wednesday Morning Livestock Market Update - Further Strength Expected

GENERAL COMMENTS:

Cattle have resumed the uptrend after a short period of choppiness. Higher cash cattle last week and the expectation for similar gains this week continue to provide confidence for traders to buy and hold. After all, what is there to hold this market back? The rhetoric from the government a while back that they were going to do things to reduce beef prices was just talk. The little that was implemented had no impact, and there has been no further discussion on it, as their attention is turned to other things. Beef prices are strong due to supportive fundamentals, and that will not change much anytime soon. Boxed beef prices were higher, with choice up $2.50 and select up $2.32. The March feeder cattle contract is near the chart gap that has remained since mid-October. There is a strong possibility that the gap will be closed. The other contracts will follow suit.

Hog futures continue the higher trend with new contract highs again being established. The July contract closed above $111 with the potential to move above $112 soon. Contracts closing near the day's highs lend themselves to further strength today. Strong demand continues to provide confidence to traders to add to their long positions. Pork cutout values increased, posting a gain of $1.67 on Tuesday. The National Daily Direct Afternoon Hog report jumped $4.15 with moderate purchasing activity by the packers. Higher cash is expected again today. Strong slaughter is being maintained to meet demand.

	BULL SIDE		BEAR SIDE
1)	The resumption of the uptrend in cattle futures increases the likelihood that the chart gaps above the market will be filled.	1)	The chart gaps above the cattle markets may be a level of strong resistance where selling could increase due to profit-taking.
2)	Boxed beef prices have been increasing as slower slaughter and good demand are resulting in higher beef prices.	2)	We know that markets cannot go up forever and will reach a level of consumer price resistance.
3)	The large increase in cash hogs on Tuesday indicates the packers need hogs, and supplies may not be as abundant as they have been.	3)	Hog futures are overbought, which could trigger selling if there is any indication of fundamental price weakness.
4)	The uptrend in hog futures continues to pull more buyers into the market.	4)	Continued higher prices for cutouts may eventually slow pork demand and reduce packer buying.

Tuesday Closing Livestock Market Update - Strong Fundamental Outlook Helps Push Contracts Higher

GENERAL COMMENTS:

It was a rallying day for the livestock complex as all three of the contracts closed higher. Still no cash cattle trade has developed, but it's assumed that later this week, prices will be higher as fundamental support remains incredibly strong and the outlook for 2026 is bullish. March corn is up 2 3/4 cents per bushel and March soybean meal is down $2.60. The Dow Jones Industrial Average is down 166.67 points and the NASDAQ is down 336.92 points.

LIVE CATTLE:

Fueled by a strong fundamental underpinning, the live cattle contracts closed fully higher Tuesday afternoon. More than anything, the strong promise of a fruitful 2026 has the live cattle complex trading higher as traders were pleased to note the bullish Cattle Inventory report released last Friday. It is worth mentioning that the rally recently seen in the live cattle complex has the market trading at the highest level seen since the late October 2025 crash. Still no cash cattle trade has developed, and trade will likely be delayed until the latter half of the week. February live cattle closed $2.15 higher at $240.32, April live cattle closed $2.10 higher at $241.62 and June live cattle closed $2.37 higher at $236.62. 

Tuesday's slaughter is estimated at 115,000 head, 3,000 head more than a week ago and 7,000 head less than a year ago.

Boxed beef prices closed higher: choice up $2.50 ($370.71) and select up $2.32 ($367.23) with a movement of 118 loads (93.07 loads of choice, 7.52 loads of select, 8.22 loads of trim and 8.83 loads of ground beef).

WEDNESDAY'S CATTLE CALL: Higher. With supplies of market-ready cattle thin, it's assumed that prices will be higher again this week.

FEEDER CATTLE:

With support seeming to seep into the market from nearly every direction, it was almost easy for the feeder cattle contracts to close higher Wednesday afternoon. March feeders closed $1.57 higher at $367.92, April feeders closed $1.70 higher at $365.87 and May feeders closed $2.05 higher at $362.40. At Joplin Regional Stockyards in Carthage, Missouri, compared to their last sale two weeks ago, feeder steers traded mostly $5.00 to $20.00 higher, with four weights trading as much as $35.00 to $50.00 higher and six weights trading $20.00 to $25.00 higher. Feeder heifers sold mostly $5.00 to $7.00 higher. Feeder cattle supply over 600 pounds was 77%. The CME feeder cattle index 2/2/2026: up $0.60, $375.01.

LEAN HOGS:

Scoring new contract highs thanks to the added support of consumers and an uptick in the cash hog market, the lean hog complex had another splendid day as the market continues to rally. February lean hogs closed $0.80 higher at $88.55, April lean hogs closed $1.52 higher at $98.15 and June lean hogs closed $1.10 higher at $110.87. So long as consumer support remains ample, there's a strong possibility that traders continue to push the contracts higher despite the market already being at new contract highs in its spot April contract.

Hog prices closed higher on the Daily Direct Afternoon Hog Report, up $4.15 with a weighted average price of $86.17 on 4,771 head. Pork cutouts totaled 303.82 loads with 272.58 loads of pork cuts and 31.24 loads of trim. Pork cutout values: up $1.67, $97.37. Tuesday's slaughter is estimated at 487,000 head, 16,000 head more than a week ago and steady with a year ago. The CME lean hog index 1/30/2026: down $0.07, $85.71.

WEDNESDAY'S HOG CALL: Steady/somewhat higher. With consumer demand strong, there's a chance that prices could be steady or trade even higher later this week.

Tuesday Midday Livestock Market Update - Strong Fundamental Support Continues to Push Contracts Higher

GENERAL COMMENTS:

The livestock complex is higher into Tuesday's noon hour as traders remain encouraged by the outpour of fundamental support the market has seen in recent days. Still no cash cattle trade has developed and it's likely trade will be delayed until Thursday or Friday this week. March corn is up 2 1/4 cents per bushel and March soybean meal is down $1.70. The Dow Jones Industrial Average is down 126.17 points and NASDAQ is down 306.56 points.

LIVE CATTLE:

The live cattle complex continues to move higher as traders have gained another level of confidence following last Friday's bullish Cattle Inventory report. February live cattle are up $0.20 at $238.37, April live cattle are up $0.05 at $239.57 and June live cattle are up $0.80 at $235.05. The market is pressuring its technical barriers as this is currently the highest price point traded at since last October. As long as fundamental support continues to remain robust, traders will likely remain supportive and push the contracts higher. But it's undeniable traders will need to see continued fundamental support. Following last week's strong trade in the fed cash cattle market, there's been no new business develop yet and it's most likely trade will be delayed until Thursday or Friday of this week. It is assumed prices will be higher again this week as supplies of market-ready cattle remain thin.

Boxed beef prices are higher: choice up $2.66 ($370.87) and select up $2.85 ($367.76) with a movement of 56 loads (40.98 loads of choice, 3.08 loads of select, 4.94 loads of trim and 6.53 loads of ground beef).

FEEDER CATTLE:

With encouragement from last week's bullish Cattle Inventory report, the stronger trade in the fed cash cattle market last week, and the live cattle contracts now trading higher, the feeder cattle complex is trading higher thanks to these support factors. March feeders are up $0.27 at $366.62, April feeders are up $0.47 at $364.65 and May feeders are $1.35 at $361.70. If the live cattle contracts happen to weaken, there's a strong chance the feeder cattle contracts will too.

LEAN HOGS:

The projected CME Lean Hog Index is delayed from the source. Hog prices average $86.27 on the Daily Direct Morning Hog Report, with prices ranging from $80.00 to $88.00 on 2,461 head and a five-day rolling average of $85.12. Pork cutouts total 191.65 loads with 176.52 loads of pork cuts and 15.13 loads of trim. Pork cutout values: up $0.35, $96.05.

Tuesday Morning Livestock Market Update - Follow-Through Buying Is Expected

GENERAL COMMENTS:

Cattle futures pushed higher as traders became aggressive on the heels of a stronger cash cattle trade last week. Feedlots are in the driver's seat and will continue to hold for higher cash. Packers have not been able to surround themselves with many cattle. The Cattle Inventory report showed the lowest amount of cattle in feedlots since 2018. The Cattle on Feed report a few weeks ago showed the continued tightening of feeder cattle inventories. This does not indicate cattle supplies will be increasing anytime soon. Packers continue to face the fact that reduced slaughter is not going to boost supplies. It is uncertain what is going to break this cycle and increase the incentive for herd rebuilding. Boxed beef prices were higher on Monday, with choice up $2.65 and select up $2.97.

Hog futures exhibited strong buying interest with contracts closing the chart gaps that remained from last week and setting new highs in the May and later contracts. The July contract easily moved above $110 and is knocking on the door of $111, falling just shy of reaching that level on Monday. There is some evidence of hog numbers tightening amidst the outlook for increasing demand. Pork cutout values increased $1.48 on Monday. However, packers remained less aggressive with the National Daily Direct Afternoon Hog report down $1.35. It is expected that packers may follow their usual pattern and step up to purchase hogs more aggressively today.

	BULL SIDE		BEAR SIDE
1)	Strong cash cattle prices last week and the prospect for higher cash this week should continue to support futures.	1)	Cattle futures are supported but are having some difficulty maintaining a consistent uptrend. Traders are cautious over outside influences.
2)	Feeder cattle being purchased by feedlots continue to command a premium over the market in many cases. Supplies are tight, and feedlots want to keep lots full.	2)	Even though sterile New World screwworm flies have been released along the border, the threat of a case in the U.S. will remain prevalent.
3)	Hog futures moved to new contract highs in the May and later contracts, keeping traders buying and holding contracts.	3)	Packers are having no difficulty obtaining the hogs they need to maintain the strong slaughter pace.
4)	Pork cutouts continue to remain strong, indicating good consumer demand.	4)	Without the consistent support of cash, hog futures may have a difficult time seeing much further upside potential.

Monday Closing Livestock Market Update - Cattle Prices Surge

GENERAL COMMENTS:

Cattle futures surged higher at the opening bell Monday morning and maintained active gains through the entire trading session. Although live cattle futures closed well below daily highs, the ability to sustain the $2 per cwt market rally early in the week is still considered a major win. Last Friday's Cattle Inventory report was the main spark to the renewed buyer support. This report posted that overall cattle numbers were below year-ago levels, and beef cow numbers were 1% below year-ago levels. Calves born last year fell 2% from the year previous. This bullish report was encouraging for the market. But at the same time, we really don't know much more about the overall scope of the market support. Even without specific numbers, it was not unknown in the industry that cattle supplies have tightened, which has led to current price levels. The challenge in maintaining the most recent market gain is understanding how demand will react to the current supply shortages, and what will happen in the overall beef market over the next two years, when it comes to rebuilding or sustaining the current herd. Hog prices closed lower on the Daily Direct Afternoon hog report, down $1.35 with a weighted average of $82.22 on 715 hogs. March corn closed down 2 1/2 at $4.258 and March soybean meal closed up $0.90 at $294.5. The Dow Jones Industrial Average is up 515.19 at 49,407.66.

LIVE CATTLE:

Live cattle futures posted strong triple-digit gains Monday in reaction to continued bullish beef and cash market news as well as last Friday's Cattle Inventory Report. Steers weighing 500 pounds or more are down 1% from year-ago levels, with total cattle and calves on feed in all feedlots down 3% from year-ago levels. The main change in year-over-year levels is seen in reporting feedlots with fewer than 1000 head. This is a segment that is not measured in the monthly cattle on feed reports and impacts overall numbers, although not the majority of the industry. Cash cattle markets are quiet in the country this afternoon, with bids and asking prices not established. Significant trade volume will likely be delayed until much later in the week. New showlists appear to be lower in all major feeding areas, somewhat lower in Texas, but lower in Kansas, Nebraska/Colorado. February live cattle closed $2.33 higher at $238.175, April live cattle closed $2.73 higher at $239.525 and June live cattle closed $2.53 higher at $234.25. 

Monday's slaughter is estimated at 108,000 head, 8,000 head more than a week ago and 5,450 head less than a year ago. 

Boxed beef prices closed higher: choice up $2.65 ($368.21) and select up $2.97 ($364.91) with a movement of 58.44 loads (33.34 loads of choice, 8.86 loads of select, 7.12 loads of trim and 9.12 loads of ground beef).

TUESDAY'S CATTLE CALL: Steady to $1 Higher. Strong futures market support, as well as expected strength in beef values through the week, is expected to keep feeders actively pricing cattle higher than last week. It is likely to be the end of the week before active trade develops.

FEEDER CATTLE:

Feeder cattle skyrocketed higher through the day, with March futures leading the market gains at the closing bell with a $6.07 per cwt rally. The confirmation that overall cattle inventory numbers are tight in Friday's Cattle Inventory Report, which is no surprise to anyone, sparked intense buyer interest as traders now have a number to put toward this tightness and market trend. The fact that overall cow herd reductions continue through 2025 and overall calving levels were 2% lower in 2025 compared to the previous year points to continued challenges getting access to calves to supply the beef demand over the next couple of years. The focus on strong buyer support continues through all 2026 contracts with a limited price spread in all nearby futures contracts.

March feeders closed $6.08 higher at $366.35, April feeders closed $5.90 higher at $364.175 and May feeders closed $5.23 higher at $360.35. The CME Feeder Cattle Index for January 29: up $3.72, $374.41.

LEAN HOGS:

Lean hog futures posted moderate to strong gains Monday as supportive buyer interest came in from different directions. One side pointed to the rest of the livestock trade skyrocketing sharply higher based on lower-than-expected cattle inventory levels at the end of the year. But if this wasn't enough, a strong stock market and financial support flooded the market. This helped stimulate buyer support in most contract months, but the majority of support developed in spring and summer 2025 contract months. The focus on positive gains in economic markets points to support in overall demand both domestically and in export markets. This upward move has not pushed May contracts above $100 per cwt, as traders look for further market direction as the week continues. February lean hogs closed $0.50 higher at $87.75, April lean hogs closed $1.48 higher at $96.625 and May lean hogs closed $1.70 higher at $100.625. Monday's hog slaughter is estimated at 461,000 head, 35,000 head more than a week ago and 15,000 head less than a year ago. Pork Cutouts totaled 287.08 loads with 240.68 loads of pork cuts and 46.40 loads of trim. Pork cutout values are up $1.48 at $95.7. The CME Lean Hog Index for January 29: up $0.06, $85.78.

TUESDAY'S HOG CALL: Steady to $1 Higher. Firm outside market support is expected to firm price levels through the week as packers continue to gain access to market-ready hogs. The ability to sustain futures prices and advance pork values in the next few days will help to give additional direction to cash hog markets.

Monday Midday Livestock Market Summary - Cattle Futures Surge Higher

GENERAL COMMENTS:

Cattle markets are holding strong triple-digit gains at midday Monday, following the bullish cattle inventory report seen last week. The focus on total cattle numbers slightly lower than the previous year, and total calvings falling 2% in 2025 compared to the previous year, has rekindled the overall bullish buying activity across the entire livestock market. The rebound in financial markets is adding to the buyer interest with Dow Jones markets up over 500 points at times through morning trade, and less focus on economic pressure early in the week is helping stimulate both cattle and hog market buying. March corn is down 4 at $4.243 and March soybean meal is down $0.40 at $293.2. The Dow Jones Industrial Average is up 404.58 at 49,297.05.

LIVE CATTLE:

Live cattle futures surged higher early Monday morning following the bullish news from last week's cattle inventory report. The focus on overall reduction in all cattle numbers and 2025 calvings decreasing by 2% has continued to spark renewed buying support through early trade. Although contracts have backed away from initial highs, the focus on strong early week gains is likely to keep buyers active through the rest of the session. Cash cattle markets look to be a typically quiet Monday with both buyers and sellers busy taking inventory and preparing for the week ahead. Bids and asking prices have yet to be established, and if the trend of the last couple of weeks continues, significant trade volume will be delayed until much later in the week. February live cattle are $2.83 higher at $238.675, April live cattle are $3.28 higher at $240.075 and June live cattle are $3.05 higher at $234.775. 

Boxed beef prices are Higher: choice up $2.14 ($367.70) and select up $2.35 ($364.29) with a movement of 32.80 loads (20.27 loads of choice, 4.93 loads of select, 3.40 loads of trim and 4.20 loads of ground beef).

FEEDER CATTLE:

Feeder cattle futures are leading the market higher Monday morning as renewed focus on tight supplies continues to be seen through the entire cattle complex. The announcement in Friday's cattle inventory report of a 2% drop in calves born during 2025 continues to not only leave current buyers actively looking for cattle to fill yards, but it indicates that the trend will not be changing any time soon. It will be interesting to see how active buyer support remains over the next couple of days and weeks following this bullish report. Although the report gives actual numbers to the market supply tightness, the fact is that the market has already factored in much of the tightness, and this will not change the overall expectations of the beef market over the upcoming months. March feeders are $6.48 higher at $366.75, April feeders are $6.25 higher at $364.525 and May feeders are $5.75 higher at $360.875.

LEAN HOGS:

Lean hog futures have moved actively higher Monday as well. Although the same dynamics seen in the cattle market are not seen in the hog complex, the spill-over bullish support from surging cattle markets and active outside market buying activity has helped to push nearby contracts to triple-digit gains during morning trade. Spot month February futures are holding 80 to 90 cent gains through most of the morning, but the rest of nearby contracts are holding strong triple-digit gains near $2 per cwt through much of the morning. Traders continue to not only gain spill-over support from any beef market support during the year, but continued gains in financial markets are helping to keep hog market traders actively buying in initial February trade. February lean hogs are $0.85 higher at $88.1, April lean hogs are $1.98 higher at $97.125 and May lean hogs are $2.08 higher at $101. Hog Prices are unreported due to confidentiality on the Daily Direct Morning Hog report. Pork Cutouts totaled 163.86 loads with 126.44 loads of pork cuts and 37.42 loads of trim. Pork cutout values are up $0.58 at $96.98.

Monday Morning Livestock Market Update - Traders Are Expected to Support the Cattle Market

GENERAL COMMENTS:

Cattle traders were desperately looking for something to cause them to hold positions through the end of the month. The uncertainty of cash trade and the biannual Cattle Inventory report left them taking some profits ahead of the weekend. Cash cattle trade developed late, with Southern live prices trading as much as $5.00 higher, while Northern dressed cattle traded as much as $9.00 higher. That should provide support to begin the month. Packers were short-bought and should remain aggressive due to tight cattle supplies. The biannual Cattle Inventory report was not bearish to the market, showing all cattle and calves down slightly from a year earlier at 86.2 million head. Cows and heifers that have calved totaled 37.2 million, also down slightly from a year earlier. Beef replacement heifers totaled 4.71 million head, 1% above a year earlier, but that will not hurt the market. The calf crop was 2% lower at 32.9 million head. Boxed beef prices were mixed on Friday, with choice down $2.10 and select up $1.22. The Commitment of Traders report showed the fund traders adding 2,928 live cattle futures positions, increasing their long positions to 104,399. They added 1,460 long positions to feeder cattle, bringing their net-long position to 18,865 contracts.

Hog futures closed mixed with slight pressure on contracts through August, while later contracts again posted new highs. Traders had little to turn the market one way or the other. The National Daily Direct Afternoon Hog report showed cash down $0.81 and was not unexpected. Pork cutouts were higher, posting a gain of $0.79. Packers had no difficulty obtaining the hogs they needed to maintain the higher slaughter pace. The Commitment of Traders report showed that the interest remains for fund traders to add to their long positions. The net-long position totaled 109,537 futures contracts, up 17,321 contracts from the previous week.

	BULL SIDE		BEAR SIDE
1)	Cash cattle traded higher last week, which should provide support to futures. It is also a new month and may increase buying interest.	1)	Feeder cattle have been close to closing the chart gap but have been unable to do so.
2)	The biannual Cattle Inventory report was not bearish, showing cattle numbers will remain tight for some time to come.	2)	Boxed beef prices have been mixed last week. If that continues, it may limit the upside potential for futures.
3)	Hog slaughter remains very strong and indicates that demand for pork is strong. This will keep supplies from backing up in the country.	3)	Cash hogs are unable to find a solid footing, and prices remain choppy.
4)	Later futures contracts continue to make new highs with traders adding to their long positions.	4)	Hog slaughter is strong and higher than a year ago, but it is not enough to tighten the hog supply in the country.